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Area
Product & Information Engineering

  Information Services
Website Development
Warpspeed

Global Network Services

Marketing & PR

Security & Business Controls
Europe

  Commercial headcount
Overall headcount
Wholesale

Enterprise

Structuring and Sales Engineering
Purchasing

Facilities
Human Resources

Corp Charges

Depreciation and Amortization
Goodwill Amortization
Depreciation

Other Possibilities:

Decrease Bonus Accrual by half

Consider Asia headcount reduction (from 46 to 35?)
Increase IT capitalization rate

Move computer equipment to Networks
Move FF&E to Corp.

Plan for Reducing Costs

Transfer personnel to Networks and pay for
services as needed (included in Corp charges)
Transfer personnel to Networks and pay for
services as needed (included in Corp charges)

Reduce staff by 50%; transfer to Corp.
redeployment

Reduce field operations staff; transfer to Corp.
redeployment (18 identified now, 10 to be identified
over next 30 days)

Transfer personnel to Corp. except for core PR
team and pay for services as needed (included in
Corp charges)

Transfer personnel to Corp. and pay for services as
needed (included in Corp charges)

Reduce current commercial headcount; transfer to
Corp. redeployment

Implement hiring freeze immediately

Reduce current commercial headcount; transfer to
Corp. redeployment

Reduce current commercial headcount; transfer to
Corp. redeployment

Reduce headcount due to commercial headcount
decreases; transfer to Corp. for redeployment
Reduce headcount estimate for year end
Transfer to Corp. and pay for services as needed
(included in Corp. charges)

Reduce current headcount; transfer to Corp.
redeployment

Negotiate reduction in Networks charge for desktop
support; buy back PR, security and information
services

Anticipated change in accounting rules for goodwill -
amortization not required after 7/1/01

Reassess deployment dates for assets and change
useful life estimates

Amount Per Estimated
Revised Revised
  Plan Amount Savings

9.0	0.0	9.0
2.4	1.4	1.0
11.0	5.5	5.5
56.3	52.0	4.3
9.4	4.7	4.7
2.0	0.0	2.0

1.0	0.0	1.0
2.9	0.0	2.9
12.7	6.6	6.1
11.2	9.5	1.7
12.3	10.2	2.1
2.8	2.0	0.8
1.5	0.0	1.5
4.7	4.0	0.7
8.6	5.0	3.6

19.8 11.4 8.4

135.0 58.0 77.0
132.3

  23.5
5.0
4.0
4.1
1.2

  170.1


EXH009-00872